Practice question
Under the default Article1839 liquidation order, which liability is paid before amounts due to partners for their capital?
- A genuine loan made by a partner to the firm, distinct from capital and profits
- A partner profit distribution only
- Every partner capital claim must be paid before any loan
- A speculative future dividend
- No partner can ever be a creditor
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1830(4),1831 and1839.
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